Magnetic tracking systems are used in variety of applications, for example in image guided medical applications, radiation therapy (e.g. tumor tracking), other medical diagnostic and therapeutic devices, ergonomics and human motion research, animation (e.g. motion capture), and industrial measuring. The presence of conductive objects in the vicinity of the magnetic tracking system can degrade the performance of the system. The eddy currents induced within a conductive object can disturb the position indication of a sensor and result in inaccurate position and/or orientation information.